We recommend someone in your organisation regularly reviews the UK Government’s guidance for employers which is updated daily.
This guidance provides details of support available to businesses including :
- statutory sick pay relief package for SMEs; and
- the HMRC Time To Pay Scheme to help with tax
Other details arising from the Governments announcements specifically relating to financial assistance to businesses :
There is a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- The government will introduce a business rates retail holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
- Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.
- A £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
- Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local authority. Guidance for local authorities on the business rates holiday will be published by 20 March 2020
Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief.
- The government will provide additional funding for local authorities to support small businesses that already pay little or no business rates because of small business rate
- relief (SBBR). This will provide a one-off grant of £10,000 to businesses currently eligible for SBRR or rural rate relief.
- If your business is eligible for SBRR or rural rate relief, you will be contacted by your local authority – you do not need to apply.
- Funding for the scheme will be provided to local authorities by government in early April. Guidance for local authorities on the scheme will be provided shortly.
- Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000.
- The Government will introduce a business rates retail holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
- Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.
- A £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
- Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local authority. Guidance for local authorities on the business rates holiday will be published by 20 March 2020.
The Coronavirus Business Interruption Loan Scheme (CBILS) – support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance.
This government initiative is delivered by the British Business Bank, to support to businesses to access bank lending and overdrafts. See details here : www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils.
Almost all business sectors are eligible but it must be a UK based business with turnover no more than £41 million per annum.
The full eligibility criteria will be published shortly.
The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. Businesses can access the first 6 months of that finance interest free, as government will cover the first 6 months of interest payments.
How does a small business apply for a CBILS-Backed facility?
It’s is supposedly simple to apply and should take no longer than a standard application. Any small business interested in CBILS should, in the first instance, approach one of the 40+ accredited lenders with their borrowing proposal.
If the accredited lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so. Where the small business has a sound borrowing proposal but insufficient security, the lender will consider the business for support via the scheme.
If you have concerns or questions, please contact the WardWilliams Creatives team. As further details are announced we will keep you informed.
